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  1. business
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  3. cash ratio = (cash + cash equivalents) / total

Cash ratio = (Cash + Cash equivalents) / Total current liabilities...

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Question

Accounting

Cash ratio

=

(Cash + Cash equivalents) / Total current liabilities

Now,

compute

the cash ratios for

2016

and

2015.

(Round your answers to two decimal places, X.XX.)

2016:

2015:

More

Lanfield, Inc.

Comparative Balance Sheet

December 31, 2016 and 2015

2016

2015

2014*

Assets

Current Assets:

Cash

$98,000

$97,000

Accounts Receivables, Net

112,000

119,000

$106,000

Merchandise Inventory

147,000

162,000

202,000

Prepaid Expenses

12,000

7,000

Total Current Assets

369,000

385,000

Property, Plant, and Equipment, Net

219,000

176,000

Total Assets

$588,000

$561,000

$600,000

Liabilities

Total Current Liabilities

$226,000

$246,000

Long-term Liabilities

122,000

94,000

Total Liabilities

348,000

340,000

Stockholders' Equity

Preferred Stock, 4%

108,000

108,000

Common Stockholders' Equity, no par

132,000

113,000

94,000

Total Liabilities and Stockholders' Equity

$588,000

$561,000

Answer & Explanation Solved by verified expert
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